Question 1

Which of the following is the correct transfer pricing rule that can be followed by an FSC?

Accepted Answer

A)   All transfer prices must be arm's-length prices.
B)   Special rules allow the exporter to sell goods or services to the FSC at less than an arm's-length price.
C)   Special rules apply for FSC income that arises from export services performed inside the United States for its parent companies.
D)   Special rules apply only for income that is exempt from U.S. taxation.

Question 2

Which of the following is not true concerning the taxation of expatriate income?

Accepted Answer

A)   The taxpayer must have been a resident outside of the United States for an uninterrupted period that includes less than an entire taxable year or less than at least 330 full days during any twelve consecutive months.
B)   The taxpayer can exclude from U.S. taxation the lesser of the individual's foreign earned income or $70,000.
C)   The $70,000 exclusion is an increase from the prior year.
D)   A housing allowance is permitted.

Question 3

The concept where under similar circumstances, taxpayers should pay the same tax is

Accepted Answer

A)   double taxation.
B)   a tax incentive.
C)   equity.
D)   neutrality.

Question 4

Gains and losses from foreign currency transactions are treated as capital gains in the U.S.

Accepted Answer

A) True 
 B)False

Question 5

The IRS requires that all transfers among related enterprises take place at "arm's -length" prices.

Accepted Answer

A) True 
 B)False

Exam 16: International Taxation Issues

Which of the following is the correct transfer pricing rule that can be followed by an FSC?

Correct Answer
verified

The concept where under similar circumstances, taxpayers should pay the same tax is

Correct Answer
verified

Gains and losses from foreign currency transactions are treated as capital gains in the U.S.

Correct Answer
verified

The IRS requires that all transfers among related enterprises take place at "arm's -length" prices.

Correct Answer
verified

Which of the following is not true concerning the taxation of expatriate income?

Correct Answer
verified

Exam 16: International Taxation Issues

Which of the following is the correct transfer pricing rule that can be followed by an FSC?

Correct AnswerverifiedShow Answer

The concept where under similar circumstances, taxpayers should pay the same tax is

Correct AnswerverifiedShow Answer

Gains and losses from foreign currency transactions are treated as capital gains in the U.S.

Correct AnswerverifiedShow Answer

The IRS requires that all transfers among related enterprises take place at "arm's -length" prices.

Correct AnswerverifiedShow Answer

Which of the following is not true concerning the taxation of expatriate income?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified